This is the stock's current price divided by the third best


With stocks whose earnings are volatile from year to year, I sometimes focus on what I call the malt shop P/E ratio. This is the stock's current price divided by the third best annual earnings in the past 10 years. With Arch Coal (ACI), for example, the malt shop P/E is only six, even though the P/E on trailing earnings is 46..

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